As I said during every other promise of
XYZ monies = ABC more jobs
why not just pro rate it and get us back to full employment. So if Janet says $2.3T creates 3M jobs why not get us back to full employment with say $8T quantitative easing? Bigger question is - who knew just doing QE was all it took to create jobs! Why bother with K-12 and university education - our central planners at the Fed can create all the jobs they want with a press of a button.
Who are we to doubt anything coming out of the Fed...
Another interesting comment - the Fed will be back to a "possible" normal balance sheet in
- Federal Reserve Vice Chairman Janet Yellen presented a possible timeline of about seven years before the Fed’s balance sheet is restored to normal levels, while saying the central bank’s asset purchases will end up creating 3 million jobs by 2012.
- The researchers conclude that private employment is currently 1.8 million higher than it would have been without the policy and will get an added boost of 1.2 million by 2012. (I believe this is called the "finger in air" model)
- Yellen referred to a model created by Fed economists that assumes the central bank will complete its second round of large-scale Treasuries purchases within a year. The Fed’s balance sheet would stay “elevated” for two years before returning to a normal size over five years, she said, alluding to the economists’ research.
- The Fed’s moves won’t hinder growth overseas, are having “only moderate effects on the foreign exchange value of the dollar,” and do not appear to be triggering “significant excesses or imbalances in the United States,” she said.
[Mar 12, 2010: US Dollar Takes a Hit as Janet Yellen Leaked to be Nominee to Replace Donald Kohn as Fed VP]